Education ministry defends new University Funding Model despite legal uncertainty
PS Muganda reassured the Committee that the government was actively working to resolve the legal challenges surrounding the model.
The Ministry of Education has defended the New University Funding Model, assuring Kenyans that the government is committed to ensuring the sustainability of higher education financing in the country.
Speaking before the Senate Standing Committee on Education, Higher Education PS Beatrice Muganda and HELB CEO Geoffrey Monari defended the model that is currently facing legal uncertainty following a High Court injunction that halted its implementation.
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"The New Funding Model has indeed reduced the barriers to accessibility to programmes, and we continue to see an increase in student applications," stated PS Muganda.
Meanwhile, the Senate Education Committee, led by Vice Chair Senator Margaret Kamar, raised concerns about the fate of students affected by the court's suspension of the model.
Senators questioned whether students who had already been placed under the model would continue receiving financial support and sought clarification on how the categorisation of students under the new funding structure would benefit both parents and learners.
"How will the New Funding Model benefit the parents and students alike whilst also ensuring a better understanding of the band categorisation?" posed Senator Kamar.
In response, PS Muganda reassured the Committee that the government was actively working to resolve the legal challenges surrounding the model.
"The government is actively engaging stakeholders, including the judiciary, universities, and financial institutions, to resolve the legal challenges and restore certainty to higher education funding. Meanwhile, the injunction has not stopped us from rolling out some aspects of the model. ," stated PS Muganda.
On his part, HELB, CEO Geoffrey Monari, informed the Committee that loan applications had increased by 5,000 students since the Board launched a public awareness campaign about the model.
He further revealed that loan recoveries had reached 64%, indicating an improvement in the board's financial sustainability.
"The government is also considering expanding HELB financing, improving bursary allocations, and adjusting university fee structures to balance affordability with institutional sustainability," stated Monari.
Beyond immediate interventions, the Ministry underscored the need for long-term measures to ensure higher education remains financially viable.
Officials proposed that universities diversify their income streams by investing in research, innovation, and consultancy services.
The adoption of digital learning platforms and cost-cutting measures were also highlighted as strategies to optimize resources while maintaining academic quality.
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